Anticipatory bail granted in case of their arrest for offence punishable under section 132 of the CGST Act, subject to the condition that the ITC availed on the basis of forged invoices would be reversed. 

Facts: In this case, the assessee has filed an application before the High Court for the anticipatory bail in case of their arrest for the offence punishable under section 132 of the CGST Act. They were willing to reverse the input tax credit allegedly taken on the basis of forged invoice in a prescribed manner as may be satisfied i.e. either in instalments or in one go to the GST Department.

Issue: Whether assessee were to be granted anticipatory bail subject to condition that they would reverse input tax credit allegedly taken on basis of forged invoice to GST Department.

Held: The High Court then submitted that without following the procedures contained under Sections 72 and 73 of the Jharkhand Goods and Services Tax Act, 2017, the prosecution ought not to have been initiated. It is lastly submitted that the petitioners are ready and willing to co-operate with the investigation of the case. Hence, it is submitted that the petitioners be given the privileges of anticipatory bail.

Further, it was made clear that in case of failure of the petitioner assessees to reverse any of the instalments of input tax credit as mentioned above, the provisional bail granted to them shall stand cancelled and the trial Court will take appropriate steps for their apprehension for facing the trial.

To read the complete judgment 2019 Taxo.online 602